What's Going On With CVS Health Stock?
Portfolio Pulse from Henry Khederian
CVS Health Corp (NYSE:CVS) shares are trading 1.52% lower at $56.97 after reporting worse-than-expected Q2 sales and cutting FY24 adjusted EPS guidance. Sales were $91.23 billion, slightly below the $91.51 billion consensus. Adjusted EPS was $1.83, down from $2.21 last year but above the $1.73 consensus. Operating income fell 16.4% to $3.74 billion. The Health Care Benefits segment’s revenues grew by 21.4%, while the Health Services segment’s revenues dropped by 8.8%. CEO Karen Lynch will take direct control of the Health Care Benefits segment. CVS revised its 2024 adjusted EPS guidance to $6.40-$6.65, down from at least $7.00.

August 09, 2024 | 4:20 pm
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NEGATIVE IMPACT
CVS Health shares fell 1.52% to $56.97 after reporting Q2 sales below expectations and lowering FY24 adjusted EPS guidance. Adjusted EPS was $1.83, above the $1.73 consensus, but operating income fell 16.4%. CEO Karen Lynch will take direct control of the Health Care Benefits segment.
The stock price decline is due to worse-than-expected Q2 sales and a cut in FY24 adjusted EPS guidance. Despite adjusted EPS beating consensus, the overall financial performance and lowered future guidance have negatively impacted investor sentiment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100